Adelaide Trimester 1, 2023 Dr Daniel Orlovsky E: daniel.orlovsky@adelaide.edu.au Dr Ivan Obaydin Senior Lecturer in Finance Adelaide Business School Level 12, 10 Pulteney Street South Australia, 5005, AUSTRALIA T: +61 8 8313 0788 E: ivan.obaydin@adelaide.edu.au

Adelaide Semester 1, 2023 Dr Ratna Derina Lecturer in Finance Adelaide Business School Room 37, Level 12, 10 Pulteney Street South Australia, 5005, AUSTRALIA T: +61 8 8313 7137 E: ratna.derina@adelaide.edu.au Dr Chee Seng Cheong Associate Professor in Finance Adelaide Business School Level 12, 10 Pulteney Street South Australia, 5005, AUSTRALIA T: +61 8 8313 0356 E: chee.cheong@adelaide.edu.au

Adelaide Trimester 2, 2023 Dr Limin Xu Senior Lecturer in Finance Adelaide Business School Level 12, 10 Pulteney Street South Australia, 5005, AUSTRALIA E: limin.xu@adelaide.edu.au

Adelaide Semester 2, 2023 Dr Ratna Derina Lecturer in Finance Adelaide Business School Room 37, Level 12, 10 Pulteney Street South Australia, 5005, AUSTRALIA T: +61 8 8313 7137 E: ratna.derina@adelaide.edu.au W:business.adelaide.edu.au Dr Chee Seng Cheong Associate Professor in Finance Adelaide Business School Level 12, 10 Pulteney Street South Australia, 5005, AUSTRALIAT: +61 8 8313 0356 E: chee.cheong@adelaide.edu.au

Adelaide Trimester 3, 2023 Dr Limin Xu Senior Lecturer in Finance Adelaide Business School Level 12, 10 Pulteney Street South Australia, 5005, AUSTRALIA E: limin.xu@adelaide.edu.au

On successful completion of this course, students will be able to:
1. Utilise time value of money principles to value bonds and shares.
2. Employ various capital budgeting techniques to evaluate investment projects.
3. Determine the risk and return of various investment assets.
4. Explain and apply the theory of capital structure.

 

Textbook
Parrino, Au Yong, Dempsey, Morkel-Kingsbury, James, Mazzola, Murray, Smales, and Wei, Fundamentals of Corporate Finance, 4th Edition, Wiley, 2020

Calculator
This course requires considerable mathematical computation. Although much of it is relatively simple, access to an appropriate calculator is necessary. If you intend to purchase a calculator for this course, you will find it useful to purchase a financial calculator. This is of particular relevance for the time value of money calculations - the relevant function keys include; PV, FV, PMT, n, I/Y, NPV, IRR.  Any financial calculator is suitable for this course.

Other Reference Books
Berk, DeMarzo and Harford, Fundamentals of Corporate Finance, Global Edition, 5th Edition, Pearson, 2022.
Ross, Westerfield and Jordan, Fundamentals of Corporate Finance, 13th Edition, McGraw-Hill, 2022.
Brealey, Myers and Marcus, Fundamentals of Corporate Finance, 11th Edition, McGraw-Hill, 2022.

This course offering will be delivered both face-to-face and/or online.
Relevant course links for Zoom will be made available via MyUni.

This course will offer 3-hours of face-to-face / online interactive seminars from week 1 to week 12. Class attendance for the interactive seminar is an important component of student learning in this course and is likely to improve your assessment performance in this intake of the course. The communication skills developed in class by regular and active participation in discussions are considered to be most important by the Adelaide Business School and are highly regarded by employers and professional bodies.

Although not compulsory, students in this intake of the course are expected to attend all seminars throughout the trimester. The University expects full-time students (i.e. those taking 12 units per relevant term, i.e. enrolled in 4 courses) to devote a total of 48 hours per week to their studies. This means that you are expected to commit approximately 9 hours (per course) of private study outside of your regular classes.

The schedule of lecture topics for this course is as follows:

	Chapter 1: The financial manager and the company
	Chapter 2: The financial environment and the level of interest rates (self-studies)
	Chapter 5: The time value of money
	Chapter 6: Discounted cash flows and valuation
	Chapter 7: Risk and return
	Chapter 8: Bond valuation and the structure of interest rates
	Chapter 9: Share valuation
	Chapter 10: The fundamentals of capital budgeting
	Chapter 11: Cash flows and capital budgeting
	Chapter 13: The cost of capital
	Chapter 16: Capital structure policy

Assessment Task	Task Type	Due	Weighting	Learning Outcome
Online Class Tests (Open book)	Individual	Trimester weeks 5, 7, 10 and 12 (Wednesday)	36%	1, 2, 3, 4
Group Presentation	Group	Trimester weeks 8 and 9 (Friday / (Wednesday)	12%	1, 2, 3, 4, 5
Group Peer Review	Group	Trimester weeks 9 and 10 (Wednesday / Friday)	8%	1, 2, 3, 4, 5
Final Exam (Open book)	Individual	Exam Period	44%	1, 2, 3, 4, 5, 6

a) Online open-book class tests (Individual)

Over the course of the trimester, there will be 4 open-book online class tests scheduled for student completion on an individual basis, each with a 1 hour duration. Each of the online class tests will cover different topics from the course materials as listed below:

Test Number     Topics                Date / Time                                                                           Max. Weight
    Test #1           1 to 3                 Week 5 – 3 March (1.50 to 2.55pm South Australian time)               12%
    Test #2           4 to 5                 Week 7 – 17 March (1.50 to 2.55pm South Australian time)             12%
    Test #3           6 to 7                 Week 10 – 7 April (1.50 to 2.55pm South Australian time)               12%
    Test #4              8                     Week 12 – 21 April (1.50 to 2.55pm South Australian time)             12%

From the 4 available open-book online class tests scheduled in trimester weeks 5, 7, 10 and 12, students will obtain the best 3 marks from those attempted. Hence, students can be absent for a maximum of 1 test from those scheduled without affecting their overall course assessment as only 3 test marks (of 12% each) will finally be counted.

Given the above, students will not have their test rescheduled if; unavailable, sick, experiencing technical problems, or otherwise absent for a specified open-book online class test, as they will still have the same opportunity to make up their assessment as any other student.

Questions for each of the open-book online class tests will be comprised as follows:

True-false (4 questions allocated 2 marks each) Total = 8 marks
Multiple-choice (4 questions allocated 3 marks each) Total = 12 marks
Discussion (1 question) – approximately 75 words Total = 5 marks
Problem / calculation (2 questions allocated 5 marks each) Total = 10 marks
Mixed problem / calculation / discussion (1 question) Total = 10 marks
TOTAL TEST ALLOCATION 45 marks

Importantly please note the following regarding the individual open-book online class tests:

- the tests have been deliberately designed to have a speed, efficiency and accuracy component, whereby students will need to enter the test already having a (good to very good) familiarity of the relevant topic materials – hence they cannot use the online mode of the test to spend time reading / searching information for the first time regarding topic content, as students will quickly run out of time;
- students can bring in / have access to any materials they require for the tests including financial calculator, other devices, scrap paper for notes etc.;
- students who choose to sit the test(s) on-campus will also need to be respectful of other students in terms of noise / disturbances etc.;
- no formula sheets / glossary will be provided in the online tests;
- there will be an online test bank of questions prepared for each of the class tests whereby students will be randomly allocated questions for the class test, so questions will be different across the student cohort – although covering the same topic materials;
- the true-false and multiple-choice questions will be marked only based on the final response submitted, whilst the discussion / calculation / problem-based questions will have marks allocated on the basis of student input, however not for direct ‘clicking and pasting’ of reference materials or reproducing the question – students are required to respond to, not merely restate the given question;
- no negative marking will be applied to the class tests so it is in students interests to respond to each question where possible;
- the test questions will not be definition-based questions – that is, other than to refresh students memory regarding particular topic areas, it is very unlikely that students will be able to use online resources as a basis of ‘clicking and pasting’ their test responses. This has been an issue / problem in undergraduate programs, however, I am sure with the additional maturity of students studying a postgraduate program at a leading University, they would not want this process used as the basis of assessing their understanding of course materials; and
- tests will be generally be marked over the week following submission with feedback made available within the test document.

Students will obtain their assessment result for this component in the form of a mark. This assessment component is allocated 36% of the total assessment marks for the course.

Further details of this assessment component will be provided on MyUni during the trimester.

b) Group Presentation (Group)

During the trimester, students will form groups in order to give a short presentation to the class, to a number of discussion questions allocated to their group relevant to the course content. Group size for this assessment task will be dependent on final enrolment for this intake of the course and will be communicated to students in the earlier weeks of the trimester.

The allocated group questions will be structured in such a way as they will rely on considerable student engagement with their colleagues, and will not be expected to provide for a ‘click and paste’ response. As a result, members will need to be able to devote appropriate, time, effort and energy to the completion of this assessment task.

In preparation for the class presentation/role play, students will be expected to undertake research and discussion with group members, enabling them to articulate and communicate a broad range of knowledge and skills relevant to the course. All student groups will be required to provide the class cohort with a summary of their presentation in the form of a written outline and power point document in advance, as well as convey informed, constructive responses to end-of-presentation questions from other groups.

All group members are expected to be involved in the presentation, however not all groups members will need to present. Each group members will obtain the same result for their group unless particular issues of concern are raised with the Course Coordinator.
The group presentations will be undertaken in trimester week 9 (Wednesday 31 March) during the first part of the scheduled seminar time, either face-to-face or online via Zoom. Supporting documents for the presentation (written outline and power point document) will be required to be submitted to MyUni by the prior Friday (26 March) by 6pm South Australian time.

Students will obtain their assessment result for this component in the form of a grade. A Grade Descriptor Summary outlining the basis for the grade allocated together with a reconciliation of the range of marks that a grade approximately represents (for example; a Credit+ grade would range from 69 to 74 marks), will be posted to MyUni during the trimester. This task is allocated 12% of the total assessment marks for the course.

Further details of this assessment component will be provided on MyUni during the trimester.

c) Group Peer Review (Group)

A written evaluation of another group’s class presentation is required to be undertaken by each group – this is described as the group peer review. The groups will be the same as for the allocated presentation groups. As part of this process, student groups are expected to be able to articulate and communicate a broad range of knowledge and skills relevant to the general and specific content included in the course topics.

The group peer review will consist of the following assessment task components;

a) group members asking relevant, informed questions of the allocated presenting group, and
b) providing constructive, critical feedback, each at the conclusion of the presentation, together with,
c) the preparation and submission of a written peer review report.

As the group presentations are held in trimester week 9 (Wednesday 31 March), group members will need to be available at this time to review the relevant allocated group presentation and ask the required questions as indicated above. Following the group presentations, a period of 9 days will be given to groups to finalise their written peer review report. Hence the written peer review report will be required to be submitted to MyUni by Friday 9 April (due 6pm South Australian time).

Students will obtain their assessment result for this component in the form of a grade. A Grade Descriptor Summary outlining the basis for the grade allocated together with a reconciliation of the range of marks that a grade approximately represents (for example; a Credit+ grade would range from 69 to 74 marks) will be posted to MyUni during the trimester. This task is allocated 8% of the total assessment marks for the course.

Further details of this assessment component will be provided on MyUni during the trimester.

d) Online Open-book final exam (Individual)

An open-book online final exam to be completed by students individually as scheduled during the University examination period. The final exam will be held over a duration of 2 hours plus reading time and will cover all 8 topics of the course materials.

Questions in the final exam will comprise a combination of true-false, multiple choice, discussion / problem / calculation-based and mixed discussion / calculation-based questions. No negative marking will be applied to the final exam so it is in students interests to respond to each question where possible.

This assessment component is allocated 44% of the total assessment marks for the course.

Further details of this assessment component will be provided on MyUni during the trimester.

All assessments are to be submitted online via MyUni